IDEAS home Printed from https://ideas.repec.org/a/oup/erevae/v44y2017i1p3-31..html
   My bibliography  Save this article

Are there trade-offs in valuation with respect to greenhouse gas emissions, origin and food miles attributes?

Author

Listed:
  • Faical Akaichi
  • Rodolfo M. Nayga
  • Lawton Lanier Nalley

Abstract

This study measures consumers’ willingness to pay for the attributes greenhouse gas (GHG) emissions during production, food miles and origin (local/non-local) of rice products and assesses the interaction effects (complementarities and substitutions) between these food attributes using a non-hypothetical experimental auction. Results typically show that consumers are willing to pay a price premium for rice that has lower GHG emissions, lower food miles and/or is local. Most importantly, consumers were found to trade off these three food attributes. The results also show that consumers do not perceive the attributes food miles and origin as perfect substitutes.

Suggested Citation

  • Faical Akaichi & Rodolfo M. Nayga & Lawton Lanier Nalley, 2017. "Are there trade-offs in valuation with respect to greenhouse gas emissions, origin and food miles attributes?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(1), pages 3-31.
    • Handle: RePEc:oup:erevae:v:44:y:2017:i:1:p:3-31.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/erae/jbw008
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Christopher Kanter & Kent D. Messer & Harry M. Kaiser, 2009. "Does Production Labeling Stigmatize Conventional Milk?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1097-1109.
    2. Giraud, Kelly L. & Bond, Craig A. & Bond, Jennifer Keeling, 2005. "Consumer Preferences for Locally Made Specialty Food Products Across Northern New England," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-13, October.
    3. Jayson L. Lusk & F. Bailey Norwood, 2011. "Animal Welfare Economics," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(4), pages 463-483.
    4. Debra Tropp, 2008. "The Growing Role of Local Food Markets: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1310-1311.
    5. Pascale Bazoche & Pierre Combris & Eric Giraud-Héraud & Alexandra Seabra Pinto & Frank Bunte & Efthimia Tsakiridou, 2014. "Willingness to pay for pesticide reduction in the EU: nothing but organic?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(1), pages 87-109, February.
    6. Kemp, Katherine & Insch, Andrea & Holdsworth, David K. & Knight, John G., 2010. "Food miles: Do UK consumers actually care?," Food Policy, Elsevier, vol. 35(6), pages 504-513, December.
    7. repec:ebl:ecbull:v:3:y:2004:i:6:p:1-13 is not listed on IDEAS
    8. McFadden, Brandon R. & Nalley, L. Lanier & Popp, Michael P., 2013. "How Greenhouse Gas Emission Policy and Industry Pressure Could Affect Producer Selection of Rice Cultivars," Agricultural and Resource Economics Review, Cambridge University Press, vol. 42(2), pages 325-348, August.
    9. Norwood, F. Bailey & Lusk, Jayson L., 2011. "A calibrated auction-conjoint valuation method: Valuing pork and eggs produced under differing animal welfare conditions," Journal of Environmental Economics and Management, Elsevier, vol. 62(1), pages 80-94, July.
    10. Kallas, Zein & Maria Gil, Jose, 2011. "A Dual Response Choice Experiments (DRCE) design to assess rabbit meat preference in Catalonia: A Heteroescedatistic Extreme-Value Model," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114779, European Association of Agricultural Economists.
    11. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
    12. Caputo, Vincenzina & Nayga, Rodolfo M. Jr. & Scarpa, Riccardo, 2013. "Food miles or carbon emissions? Exploring labelling preference for food transport footprint with a stated choice study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(4), pages 1-18.
    13. Carlos E. Carpio & Olga Isengildina-Massa, 2009. "Consumer willingness to pay for locally grown products: the case of South Carolina," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 412-426.
    14. Douadia Bougherara & Pierre Combris, 2009. "Eco-labelled food products: what are consumers paying for?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(3), pages 321-341, September.
    15. Zepeda, Lydia & Leviten-Reid, Catherine, 2004. "Consumers' Views on Local Food," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(3), pages 1-6, November.
    16. Ty Feldkamp & Ted C. Schroeder, 2004. "Experimental Auction Procedure: Impact on Valuation of Quality Differentiated Goods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 389-405.
    17. Eastwood, David B. & Brooker, John R. & Orr, Robert H., 1987. "Consumer Preferences for Local Versus Out-Of-State Grown Selected Fresh Produce: The Case of Knoxville, Tennessee," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(2), pages 183-194, December.
    18. Eastwood, David B. & Brooker, John R. & Orr, Robert H., 1987. "Consumer Preferences For Local Versus Out-Of-State Grown Selected Fresh Produce: The Case Of Knoxville, Tennessee," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(2), pages 1-12, December.
    19. Wiser, Ryan H., 2007. "Using contingent valuation to explore willingness to pay for renewable energy: A comparison of collective and voluntary payment vehicles," Ecological Economics, Elsevier, vol. 62(3-4), pages 419-432, May.
    20. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
    21. List, John A., 2004. "Substitutability, experience, and the value disparity: evidence from the marketplace," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 486-509, May.
    22. Yuko Onozaka & Dawn Thilmany Mcfadden, 2011. "Does Local Labeling Complement or Compete with Other Sustainable Labels? A Conjoint Analysis of Direct and Joint Values for Fresh Produce Claim," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 689-702.
    23. Loureiro, Maria L. & Hine, Susan E., 2002. "Discovering Niche Markets: A Comparison Of Consumer Willingness To Pay For Local (Colorado Grown), Organic, And Gmo-Free Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(3), pages 1-11, December.
    24. Carlo Andrea Bollino, 2009. "The Willingness to Pay for Renewable Energy Sources: The Case of Italy with Socio-demographic Determinants," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 81-96.
    25. Grebitus, Carola & Lusk, Jayson L. & Nayga, Rodolfo M., 2013. "Effect of distance of transportation on willingness to pay for food," Ecological Economics, Elsevier, vol. 88(C), pages 67-75.
    26. Giraud, Kelly L. & Bond, Craig A. & Bond, Jennifer J., 2005. "Consumer Preferences for Locally Made Specialty Food Products Across Northern New England," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(2), pages 204-216, October.
    27. Stephen Toler & Brian C. Briggeman & Jayson L. Lusk & Damian C. Adams, 2009. "Fairness, Farmers Markets, and Local Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1272-1278.
    28. Johannes Kaiser, 2007. "An exact and a Monte Carlo proposal to the Fisher–Pitman permutation tests for paired replicates and for independent samples," Stata Journal, StataCorp LP, vol. 7(3), pages 402-412, September.
    29. Riccarda Moser & Roberta Raffaelli & Sandra Notaro, 2014. "Testing hypothetical bias with a real choice experiment using respondents' own money," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(1), pages 25-46, February.
    30. Joseph Little & Robert Berrens, 2004. "Explaining Disparities between Actual and Hypothetical Stated Values: Further Investigation Using Meta-Analysis," Economics Bulletin, AccessEcon, vol. 3(6), pages 1-13.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Soregaroli, Claudio & Ricci, Elena Claire & Stranieri, Stefanella & Nayga, Rodolfo M. & Capri, Ettore & Castellari, Elena, 2021. "Carbon footprint information, prices, and restaurant wine choices by customers: A natural field experiment," Ecological Economics, Elsevier, vol. 186(C).
    2. Danilo Bertoni & Daniele Cavicchioli & Franco Donzelli & Giovanni Ferrazzi & Dario G. Frisio & Roberto Pretolani & Elena Claire Ricci & Vera Ventura, 2018. "Recent Contributions of Agricultural Economics Research in the Field of Sustainable Development," Agriculture, MDPI, vol. 8(12), pages 1-20, December.
    3. Chloe S McCallum & Simone Cerroni & Daniel Derbyshire & W George Hutchinson & Rodolfo M Nayga, 2022. "Consumers’ responses to food fraud risks: an economic experiment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(4), pages 942-969.
    4. Torquati, Biancamaria & Cecchini, Lucio & Paffarini, Chiara & Chiorri, Massimo, 2021. "The economic and environmental sustainability of extra virgin olive oil supply chains: An analysis based on food miles and value chains," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 23(1), May.
    5. Oriana Gava & Fabio Bartolini & Francesca Venturi & Gianluca Brunori & Angela Zinnai & Alberto Pardossi, 2018. "A Reflection of the Use of the Life Cycle Assessment Tool for Agri-Food Sustainability," Sustainability, MDPI, vol. 11(1), pages 1-16, December.
    6. Cerroni, S. & Watson, V. & Macdiarmid, J., 2018. "Preferences for healthy and environmentally sustainable food: Combining induced-value and home-grown experiments," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277155, International Association of Agricultural Economists.
    7. Maurizio Canavari & Andreas C. Drichoutis & Jayson L. Lusk & Rodolfo M. Nayga, Jr., 2018. "How to run an experimental auction: A review of recent advances," Working Papers 2018-5, Agricultural University of Athens, Department Of Agricultural Economics.
    8. My, Nguyen H.D. & Demont, Matty & Van Loo, Ellen J. & de Guia, Annalyn & Rutsaert, Pieter & Tuan, Tran Huu & Verbeke, Wim, 2018. "What is the value of sustainably-produced rice? Consumer evidence from experimental auctions in Vietnam," Food Policy, Elsevier, vol. 79(C), pages 283-296.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grebitus, Carola & Lusk, Jayson L. & Nayga, Rodolfo M., 2013. "Effect of distance of transportation on willingness to pay for food," Ecological Economics, Elsevier, vol. 88(C), pages 67-75.
    2. Enthoven, Laura & Van den Broeck, Goedele, 2021. "Local food systems: Reviewing two decades of research," Agricultural Systems, Elsevier, vol. 193(C).
    3. Martinez, Stephen W. & Hand, Michael S. & Da Pra, Michelle & Pollack, Susan L. & Ralston, Katherine L. & Smith, Travis A. & Vogel, Stephen J. & Clark, Shellye & Lohr, Luanne & Low, Sarah A. & Newman, , 2010. "Local Food Systems: Concepts, Impacts, and Issues," Economic Research Report 96635, United States Department of Agriculture, Economic Research Service.
      • Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
    4. Tongzhe Li & Kent D. Messer & Alisher Mamadzhanov & Jill J. McCluskey, 2020. "Preferences for local food: Tourists versus local residents," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(4), pages 429-444, December.
    5. Printezis, Iryna & Grebitus, Carola, 2018. "Marketing Channels for Local Food," Ecological Economics, Elsevier, vol. 152(C), pages 161-171.
    6. Carlos E. Carpio & Olga Isengildina-Massa, 2009. "Consumer willingness to pay for locally grown products: the case of South Carolina," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 412-426.
    7. Chiara Paffarini & Biancamaria Torquati & Tiziano Tempesta & Sonia Venanzi & Daniel Vecchiato, 2021. "Rural sustainability and food choice: the effect of territorial characteristics on the consumers’ preferences for organic lentils," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-23, December.
    8. Carroll, Kathryn A. & Bernard, John C. & Pesek, John D. Jr., 2013. "Consumer Preferences for Tomatoes: The Influence of Local, Organic, and State Program Promotions by Purchasing Venue," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-18.
    9. Marco A. Palma & Alba J. Collart & Christopher J. Chammoun, 2015. "Information Asymmetry in Consumer Perceptions of Quality-Differentiated Food Products," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(3), pages 596-612, November.
    10. Ying, Jiahui & Shonkwiler, Vanessa P. & Campbell, Benjamin L., 2018. "Willingness to Pay or Not to Pay: Valuing Foods Some Respondents Find Distasteful," 2018 Annual Meeting, August 5-7, Washington, D.C. 274065, Agricultural and Applied Economics Association.
    11. Wuyang HU & Ping QING & Marvin BATTE & Tim WOODS & Stam ERNST, 2013. "What is local and for what foods does it matter?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(10), pages 454-466.
    12. Azucena Gracia, 2014. "Consumers’ preferences for a local food product: a real choice experiment," Empirical Economics, Springer, vol. 47(1), pages 111-128, August.
    13. Xu, Xun & Loke, Matthew K. & Leung, PingSun, 2015. "Is There a Price Premium for Local Food? The Case of the Fresh Lettuce Market in Hawaii," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-14, April.
    14. Maples, McKenzie & Morgan, Kimberly L. & Interis, Matthew G. & Harri, Ardian, 2013. "Who Buys Food Directly from Producers in the Southeastern United States?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(3), pages 509-518, August.
    15. Shi, Wei & Halstead, John & Huang, Ju-Chin, 2016. "Consumers’ Willingness to Pay for Locally Grown Produce: Comparison of New Hampshire and Massachusetts Results," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236109, Agricultural and Applied Economics Association.
    16. Lauren Chenarides & Carola Grebitus & Jayson L Lusk & Iryna Printezis, 2022. "A calibrated choice experiment method," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(5), pages 971-1004.
    17. Yizao Liu & Xuan Chen & Adam N. Rabinowitz & Benjamin Campbell, 2020. "Demand, challenges, and marketing strategies in the retail promotion of local brand milk," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 655-668, September.
    18. Chenyi He & Ruifeng Liu & Zhifeng Gao & Xin Zhao & Charles A. Sims & Rodolfo M. Nayga, 2021. "Does local label bias consumer taste buds and preference? Evidence of a strawberry sensory experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 550-568, July.
    19. Shi, Wei & Halstead, John M. & Huang, Ju-Chin, 2017. "Market Experience Matters: Status Quo Effect in the Economic Valuation of Consumer Preferences for Local Produce," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258290, Agricultural and Applied Economics Association.
    20. Yang, Shang-Ho & Woods, Timothy, 2014. "The Divergence of Defining Local Food – Consumer Co-op versus Conventional Grocery Shoppers," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170480, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    willingness to pay; GHG emissions; food miles; local; trade-offs;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:erevae:v:44:y:2017:i:1:p:3-31.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.